Feedback on policy

[henrylbh]

I am very keen on a simple policy to cover death as follows -

Limited and level annual premium of 6k from age 45 to 54 with triennnial payout at 5% of sum assured of 63.6k from third year. The policy matured at age 88 with sum assured of 63.6k.

Summary - total premium 60k. Triennial payout till age 88 is 44,520 excluding maturity benefit.

Till age 55 death benefits is double sum assured.

Accidental death benefit is 4x sum assured till age 55 and 2x till age 65. Thereafter, natural or accidental death same benefits.

Value any feedback before I sign up next week. Thanks.

 

[bigmice]

any policy have it's own virtue,so cannot say it's good or bad.
you should clear what your want, coverage or return?
if you want higher coverage, better choose pure term policy to cover death/tpd/ci
if you want higher return, better choose smart invest (pure invest in fund)
if you want lower risk + low coverage + low return. you can choose this policy.
do take note: any policy return(payout) is projected. no guarantee.

 

[RockyHero]

I am very keen on a simple policy to cover death as follows -

Limited and level annual premium of 6k from age 45 to 54 with triennnial payout at 5% of sum assured of 63.6k from third year. The policy matured at age 88 with sum assured of 63.6k.

Summary - total premium 60k. Triennial payout till age 88 is 44,520 excluding maturity benefit.

Till age 55 death benefits is double sum assured.

Accidental death benefit is 4x sum assured till age 55 and 2x till age 65. Thereafter, natural or accidental death same benefits.

Value any feedback before I sign up next week. Thanks.

If i read correctly this is a limited payment life insurance plan

Don't sound like a good cover for death if you ask me. Seems like you are paying apple for apple after the tenth year. 60k premium for 63.6k sum assured? Better put your money into Fixed Deposits at least you still have the flexibility to withdraw anytime. Base on 1% p.a on FD with $60,000 you will be able to get more than $66,000 return on compounded interest.

If you are looking for coverage go for term plan, and i suggest if it's for saving purpose i rather you venture into endowment if you are unable to take risk.

 

[henrylbh]

do take note: any policy return(payout) is projected. no guarantee.

The payout every 3 years till age 88 is fixed at 5% of sum assured.

 

[henrylbh]

If i read correctly this is a limited payment life insurance plan

Don't sound like a good cover for death if you ask me. Seems like you are paying apple for apple after the tenth year. 60k premium for 63.6k sum assured? Better put your money into Fixed Deposits at least you still have the flexibility to withdraw anytime. Base on 1% p.a on FD with $60,000 you will be able to get more than $66,000 return on compounded interest.

If you are looking for coverage go for term plan, and i suggest if it's for saving purpose i rather you venture into endowment if you are unable to take risk.

Got to be very wrong to put money in FD compared to this.

You missed the triennial payouts up to age 88 at 5% of sum assured.

 

[RockyHero]

Got to be very wrong to put money in FD compared to this.

You missed the triennial payouts up to age 88 at 5% of sum assured.

Your 5% pay out of sum assured eats into your cash value, you might want to check if it eats into your sum assured as well. The projected return is not guaranteed. Best is you identify the name of the plan and let the people here advise you and you yourself make a more informed choice

 

[henrylbh]

Your 5% pay out of sum assured eats into your cash value, you might want to check if it eats into your sum assured as well. The projected return is not guaranteed. Best is you identify the name of the plan and let the people here advise you and you yourself make a more informed choice

Thanks. Checked "100% of sum assured benefits payout at age 88 i.e. 63.6k" even though you already got back 44.250 over the period of insurance.

 

[FP_IFA]

The real return of the plan at the end of age 88 is about 2.1%. But TS needs to understand the plan is built more for endowment. If protection cover is your priority, this is not the plan.

Also the maturity is at age 88. Isn't that too long?

 

[gantan88]

Any plan with payout options or features does not give a very good yield. I agree with what some said, it seems like this is more built for endowment purpose and the coverage is low.

If savings and $ return is his focus, I think TS need to ask himself/herself that after getting back the triennial payouts, what will he do with the money? If there is no urgent need for the money, does he put it back into the bank and earn a miserable interest of 0.xx% /yr?

Money can always earn back. But we cannot turn back time. So if TS has the next 10 years ahead of him, he should think carefully where he should place his money. By taking the payouts and then re-investing the money into somewhere else, he is incurring re-investment loss too.